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very depressed after losing $13K in stocks.

So it seems that both our gurus singaporegal and Nostramudus have similarity ie they only do simple analysis and do not do in depth research and study. Singaporegal is purely trend/TA and Nostramudus is also more TA than FA. Hmmmm......

 

he he... Nostradamus' comment that no sensible person will invest in a company he knows nothing about is very true. That's being practical.

Actually, the earlier comment by me that TA purists "don't care a damn about what the company deals in" is just for the purpose of making a point stronger. Perhaps it should be taken in a spirit that assumes all the companies that the TA purists invest in are sound and in an industry chosen by him.

So all things being equal, the TA purist will really not pay much attention to extraneous and unknowable factors other than what the actual marketplace is doing.    :)  

 

And of course I learnt from my mistakes.



Read the Sunday Times a couple of weeks back about how the 4 investors are faring. The 2 fund managers are doing ok. But the 2  experts are faring badly. They bought currencies, commodities, stocks and warrants. They bet on the wrong direction and lost big. One of them had big losses in warrants.



So it doesn't matter if you're an expert. You'll lose if you  bet on the wrong direction.

 

I don't go poring over everything that's FA. In fact, I'm more into TA than FA. But I buy stocks which I know what businesses they're doing. Would you invest in a company if you don't know what it does?



I've never bought an investment book. Never attended any TA or FA course. Basically self-taught. I use simple analysis and it works for me.

 

Yes, these are best for those who have great patience. Buy when nobody  wants, then wait long-long for the day they will 'cheong' up. Actually there are a lot of such counters that haven't 'cheonged' yet. 

 

http://www.fool.com/news/commentary/2006/commentary06112123.htm



very good advice for fa n value investing

 

Yeah Yeah... that's true.

But to survive in  this "sea full of piranhas", where anyone can easily get bitten, one must make sure that making money quickly is not the top priority to the exclusion of more important considerations. One must not play big stakes unless you are rich.

Be careful.

 

I'm a little bit of country and a little bit of  rocknroll. Whatever strategy you used doesn't matter. Most importantly, make money!!!!!! Cheers!

 

Thanks... that's because your observation applies to me 100%.

 

Ha ha.... you hit the nail on the head !!! :)

 

Good observation.

Here're my take on the type of trading strategies each type of person should employ:


Those who are very careful about what stock they are going to buy. - FA

Those who don't care a damn about what the company deals in - TA

 

It appears that there are basically two types of stock buyers:-

Those who are very careful about what stock they are going to buy.
This category of investors will burn midnight oil for weeks or months on end studying all their brain can absorb about the company they are going to 'own'. They will be very careful in studying PE ratios, gearing, NTA backing, company personnels' background and other very highly esoteric aspects of financial analysis. They are often accountants by profession or inclination. After buying the stock of their choice, they will keep it and relish it for a long time to come.

Those who don't care a damn about what the company deals in
Not only do these investors (if you can call them that) pay only a cursory glance at the company's financial background when shown. Their whole attention is focussed only on what the public is doing about the stock, ie they only pay attention to the buying and selling activity of the stock and nothing else. They will then analyse and interprete this market activity and take appropriate the action without any emotional hindrance.

Thus is the dichotomous nature of  the market participants.

 

Agree with sohguan... don't play contra unless you have deep pockets. I know people who got burnt really bad.

 

Company goes bust means all your positions are worthless. So to summarize it is can make money is more important than all other considerations. In that case, may I suggest a visit to casino would be more enriching than playing contra? You know your winnings/losses in a matter of minutes and get CASH on the spot after waiting awhile.

Come on, visit the casino is better than playing contra correct? Or contra players have no guts to play with casino? Or contra players get the profits they earn as capital to visit the casino? Btw some casino have credit facilities for frequent visitors :P

 

Very valuable advice, sohguanh. I agree with what you said.

As regards the question of fundamentals, to a trader, the only fundamental of importance is that the company doesn't go bust while  you are having your position open. All other fundamentals are 'redundant' and at best only of academic interest.

 

Hi sohguanh

The fundamentals of a company whose stocks I contemplate buying are important to me.  So is profit making.  With the latter, sometimes we make money if one has the uncanny ability to pick stocks whose prices zoom upwards (TA prediction) within a few days.  Othertimes we dont make much $$$ because one sells out too soon and thats where FA plays an important role.  My view.

 

But there'e a need to put up a deposit sum to open a CFD account?
How much min.? (too lazy to call ). :)

 

yes CFDs are definitely the way to go.  not to mention the flexibility it offers for short selling.

 

So the many posts I have seen in this forum are mainly 'tamed' contra players? You all have been saying buy today sell next day like earning quite a lot. But CFD and warrants do offer you all a chance to maximise your profits many folds. Care to take your TA skills to CFD playground? 30 days CFD seems to be like what singaporegal has been playing around with holding period. Might churn out more profits for you all too!

In all circumstances I tink holding the shares in you all possession is worthless as you are all more concerned in profit making. Does the company fundamentals come into picture? Hehehehe... Yes? No? :)

 

..my initial investment lost around S$5k+  in CLOB (M'sian stocks) in 1998, during that time follow blindly on the so-called tips / rumours given, & don't know how to practice stop loss (S/L) trading to salvage capital ;-( ....